Here’s a bitter pill to swallow with your morning cup of tea. As international oil prices head north, so does the cost of your air ticket. Air India (AI) has increased its air ticket prices, following the 2.4% increase in aviation turbine fuel (ATF) prices by Indian oil companies on November 15. Oil companies had been reducing the price of ATF in the last one month as international crude oil prices had started to ease. Also a stronger rupee to the dollar helped in reducing fuel prices in the country. For short-haul routes (below 1,000 km) AI has increased fares by Rs 100, and for long-haul routes (above 1,000 km), the increase is Rs 200.
The increase is effective November 15.
Private carriers have not reacted yet. Some aviation analysts suggest that the private carriers would wait and see if oil companies announce another ATF price hike before they consider a fare increase. All airlines have been operating on higher yields as ticket prices had shot up.